PAKISTAN AND REGIONAL

ORGANIZATIONS

SARFRAZ HUSSAIN ANSARI (CSP)

34th Common- PA&AS
Director Finance
MBA (IBM) - UIBE Business School, Beijing
Master of Public Administration (PF) - QAU
Islamabad
Fellow Pakistan Institute of Public Finance &
Accountancy
SAP-FI Certified

NOA-Sarfraz Hussain Ansari 1

 Multilateralism
Global---IGOs Regional Organizations
• International Political Order • SAARC
• LoN • ECO
• UN • SCO
• ICJ
• EU
• NAFTA
• International Economic • ASEAN
Order
• World Bank • OIC
• IMF • GCC
• WTO • AL

NOA-Sarfraz Hussain Ansari 2

 Regional Integration and Regionalism
• Regional Cooperation Organizations and the
Role of Pakistan
– SAARC
– ECO
– SCO

NOA-Sarfraz Hussain Ansari 3

 Outline
• Introduction
– Background
– Brief History (Genesis)
– Members (and membership criteria)
• Charter, Objectives, Principles
• Structure
• Functions
• Issues and Challenges
– Geo-Strategic, Geo-Economic, ideological, trade, cultural etc
• Future Prospects
• Recommendations
• Conclusion

NOA-Sarfraz Hussain Ansari 4

SAARC
It aims to promote the welfare of the
peoples and to improve their quality of life
through;
• economic growth,
• social progress and
• cultural development in the region.
NOA-Sarfraz Hussain Ansari 5
NOA-Sarfraz Hussain Ansari 6
NOA-Sarfraz Hussain Ansari 7
 Historical Background
• President Ziaur Rahman, in December 1977,
discussed regional cooperation with the Indian
PM.
• in 1977, King Birendra of Nepal stressed for
close regional cooperation
• Also, reaping max. benefits from the Colombo
Plan
• So, the officials of the seven countries met in
Colombo in April 1981

NOA-Sarfraz Hussain Ansari 8

•  In 1983, the FMs adopted the Declaration on
– South Asian Association for Regional Cooperation
(SAARC)
• The SAARC Charter was signed in Dhaka on 8
December 1985.
• The Secretariat in Kathmandu-17 Jan. 1987.
• Initially seven, now eight member States

NOA-Sarfraz Hussain Ansari 9

SAARC Members SAARC Observers

1. Afghanistan 1. Australia
2. Bangladesh 2. China
3. Bhutan 3. the European Union
4. India 4. Iran
5. Maldives 5. Japan
6. Nepal 6. the Republic of Korea
7. Pakistan 7. Mauritius
8. Sri Lanka 8. Myanmar; and
9. the United States of
America.

NOA-Sarfraz Hussain Ansari 10

 Article I- SAARC OBJECTIVES
1. To Promote Welfare Of The Peoples of SOUTH ASIA
2. To Accelerate Economic Growth and Social Dev.
3. To Promote Collective Self-reliance
4. To Dev. Mutual Trust and Understanding of One
Another's Problems;
5. To Promote Cooperation;
– Among Member States
– With Other Developing Countries;
– In International Forums; and
– With International And Regional Organizations

NOA-Sarfraz Hussain Ansari 11

 Article II-PRINCIPLES (Functions)
• promoting peace, stability, and progress in the region
• Respect for the  principles of
– Sovereign equality,
– Territorial integrity,
– National independence,
– Non-use of force
– Non-interference in the internal affairs of other states   and
– Peaceful settlement of all disputes;
• Fostering mutual understanding, good neighborly
relations and meaningful cooperation

NOA-Sarfraz Hussain Ansari 12

SAARC-INSTITUTIONAL
FRAMEWORK

NOA-Sarfraz Hussain Ansari 13

• Article III-SAARC SUMMIT
– MEETINGS OF THE HEADS OF
STATE OR GOVERNMENT
– once a year
– Unanimous decision
• Article V- STANDING
COMMITTEE
– The Standing Committee
comprising of the Foreign
Secretaries
• Article VI- TECHNICAL
COMMITTEES
NOA-Sarfraz Hussain Ansari
Article IV-COUNCIL OF MINISTERS
A council of ministers consisting of the
foreign ministers with the following
functions:
A) formulation of the policies of the
ASSOCIATION;
B) review of the progress of
cooperation
C) decision on new areas of
cooperation;
D) establishment of additional
mechanism under the ASSOCIATION
E) decision on other matters of general
interest to the ASSOCIATION.
The council of ministers shall meet
twice a year.
14
• Article-VIII SAARC SECRETARIAT
– There shall be a Secretariat of the ASSOCIATION.
– Performs day to day administrative functions
– Esala R. Weerakoon, from Sri Lanka is the current Secretary
General from 1st March 2020

Article IX- FINANCIAL ARRANGEMENTS

• The contribution of each Member State towards
financing of the activities of the ASSOCIATION shall be
voluntary
NOA-Sarfraz Hussain Ansari 15
 Total 18
Summits held.
1. SAARC
19th Summit
Summit Once a year
was cancelled
in 2016

Meets twice a Foreign

2. Council 4. Standing
year of Ministers Committee Secretaries

Programming 3.
Committee Secretariat Kathmandu

5. Commerce &
6. Technical Committee
For particular fields Committees on Economic Trade
Cooperation Secretaries

NOA-Sarfraz Hussain Ansari 16

 SAARC Facts
• The SAARC comprises
– 3% of the world's area,
– 21% of the world's population and
– 4.21% (US$3.67 trillion) of the global economy, as of 2019.
• A compact landmass of 8 countries suitable for regional
integration;
– Roads, railways, airways, coastal belt,
– Telecom, fiber optics, energy & trade corridors
• Total 18 Summits held so far, 19th Summit was scheduled in
Nov. 2016 but was cancelled.
• Decisions on the basis of unanimity
• bilateral and contentious issues are excluded

NOA-Sarfraz Hussain Ansari 17

SAARC-A CRITICAL ANALYSIS
key issues like
energy,
climate change,
poverty alleviation,
science and technology,
Regional integration of communication
infrastructure,
trade, education, food security, tourism and
Terrorism.

NOA-Sarfraz Hussain Ansari 18

 SAARC
Areas of Cooperation Areas of Conflict
• Human Resource Dev
• Kashmir Issue
• Tourism
• Border Disputes
• Agriculture, Food Security,
• Trade Disputes
Sustainability, climate
change • Terrorism and interference
in internal affairs
• Biotechnology, IT &
Telecom, Trade and energy • Public Opinion of mutual
corridors hatred and distrust
• Poverty Alleviation

NOA-Sarfraz Hussain Ansari 19

SAARC

ECONOMIC INDICATORS

NOA-Sarfraz Hussain Ansari 20

Economic data is sourced from the International Monetary Fund, current as of
December 2019,

NOA-Sarfraz Hussain Ansari 21

The World Economic Forum: an Outlook on South Asian Economies

NOA-Sarfraz Hussain Ansari 22

 https://www.worldbank.org/en/region/sar/overview

NOA-Sarfraz Hussain Ansari 23

SAARC-GEO POLITICS

NOA-Sarfraz Hussain Ansari 24

 SAARC- Regional Power Politics
• Two dominant players-Pakistan and India off
setting each other’s influence
– (the Balance of Power in South Asia)
– Nuclear deterrence

• Enmity with India since independence

– Kashmir issue as the nuclear flash point

• India’s influence in Bangladesh, Nepal and

Bhutan due to proximity
NOA-Sarfraz Hussain Ansari 25
 SAARC-Critical Analysis …conti
• The Changing Regional Balance of Power & SAARC
– Recently, India’s increasing involvement in Afghanistan and
Iran and our strategic depth
– Pakistan tries to offset it while lobbying with Maldives, Sri
Lanka and Afghanistan
• Increasing influence of China in South Asia-
– China also off sets India- it invites other global players in the
region
– Recent row between China and India at LAC in Galwan Valley,
Laddakh
• SAARC-ECO-SCO-ASEAN
– The Emerging ‘Asian Order’

NOA-Sarfraz Hussain Ansari 26

China Encircling India

NOA-Sarfraz Hussain Ansari 27

The Geo-Politics of the Region Claimed by Pakistan, China and
India

NOA-Sarfraz Hussain Ansari 28

Energy Corridor and Pakistan

NOA-Sarfraz Hussain Ansari 29

India’s Outreach in Iran and Afghanistan

NOA-Sarfraz Hussain Ansari 30

SAARC & KASHMIR ISSUE

NOA-Sarfraz Hussain Ansari 31

The State of J&K

NOA-Sarfraz Hussain Ansari 34

NOA-Sarfraz Hussain Ansari 35
• Article 370  grants an autonomous status
while Article 35A provides special rights and
privileges to the citizens of J&K

NOA-Sarfraz Hussain Ansari 36

 UN and Kashmir Issue
• Resolution 39 (Jan.1948)- established UN Commission for India & Pak.
• Resolution 47 (21/04/1948)- Pak. withdrawal from AJ&K, then India’s
gradual withdrawal & plebiscite (Pak. Rejected)
• McNaughton Proposal (3rd Feb 1950) (India rejected)
– Simultaneous withdrawal by both
– Demobilization from the areas
– Appointment of UN officers with local administration
• Dixon Mission (India rejected)
– Demilitarized areas under Pak. be supervised by UN Commission
– UN officers attached with each district magistrate to report to UNSC
– Plebiscite

– His 2nd suggestion was to establish neutral govt. of Sheikh Abdullah and Ghulam
Abbas (and others)—a kind of national govt.

NOA-Sarfraz Hussain Ansari 39

SAARC: FUTURE
Collaborate & Integrate
Or
Confront & Disintegrate

NOA-Sarfraz Hussain Ansari 40

 SAARC-Free Trade Area
• In 1995, the first step towards a South Asian Free
Trade Area (SAFTA) 
• The SAFTA Agreement was signed on 6 January
2004 during 12th SAARC Summit held
in Islamabad, Pakistan. 
• Leading subsequently towards
– a Customs Union,
– Common Market and
– the Economic Union.
• It is still a pipedream
NOA-Sarfraz Hussain Ansari 41
 Future Scenarios
• Future expansion of SAARC???

• Three Scenarios
1. SAARC would lose its importance and
effectiveness and will be disintegrated- chances
are remote and dim
2. Status Quo

3. Revival and Future Expansion- a challenge

NOA-Sarfraz Hussain Ansari 42

The Shanghai Cooperation Organization

SCO-THE EMERGING ‘ASIAN ORDER’

NOA-Sarfraz Hussain Ansari 43

http://eng.sectsco.org/about_sco/ NOA-Sarfraz Hussain Ansari 44
 The Shanghai Cooperation Organization (SCO)

• A permanent intergovernmental organization

• Created on 15 June 2001 in Shanghai (China) by 

1. the People's Republic of China,
2. the Republic of Kazakhstan,
3. the Kyrgyz Republic,
4. the Russian Federation,
5. the Republic of Tajikistan, and
6. the Republic of Uzbekistan.

• It was preceded by the Shanghai Five mechanism.

• SCO Secretary-General VLADIMIR NOROV from January, 2019

NOA-Sarfraz Hussain Ansari 45

• The Charter was signed during the St. Petersburg SCO
Heads of State meeting in June 2002

• It entered into force on 19 September 2003.

• This is the fundamental statutory document which

outlines
– The Organization's Goals
– Principles
– Structure, and
– Core Activities.
NOA-Sarfraz Hussain Ansari 46
 The SCO Goals
The SCO's main goals are;
1. strengthening mutual trust among the member states;

2. promoting their effective cooperation in politics, trade, the economy, and other
areas;

3. making joint efforts to maintain and ensure peace, security and stability in the
region; and

4. establishment of a democratic, fair and rational new international political and
economic order.

5. Combating three evils-terrorism, separatism, and extremism

6. Regional economic linkages

NOA-Sarfraz Hussain Ansari 47

 SCO-Policy
Internal Policy External Policy
• based on the principles • is conducted
of  in accordance with the
– mutual trust, principles of 
– mutual benefit, – non-alignment,
– mutual consultations, – non-targeting any third
– equality, country, and
– respect for cultural – openness.
diversity – Common and shared
– a desire for common future
development

NOA-Sarfraz Hussain Ansari 48

 SCO-Members, Observers, Dialogue Partners

8 member states 4 observer states 6 dialogue partners

China,
India,  Afghanistan, Azerbaijan,
Kazakhstan, Belarus, Armenia,
Kyrgyzistan
Iran and  Cambodia,
Pakistan,
Russia Mongolia Nepal,
Tajikistan, and Turkey, and
Uzbekistan Sri Lanka.

NOA-Sarfraz Hussain Ansari 49

 SCO-Structure
1. The Heads of States Council (HSC) is the supreme decision-making
body in the SCO.
It meets once a year and adopts decisions and guidelines on all important
matters of the organization.

2. The Heads of Government Council (HGC)

– meets once a year to discuss the organization's multilateral cooperation
and priority areas, to resolve current important economic and other issues
– approve the organization's annual budget.

3. The Council of National Coordinators of SCO Member States (CNC)

– acts as the SCO coordination mechanism.

NOA-Sarfraz Hussain Ansari 50

4. the SCO Secretariat based in Beijing

5. the Executive Committee of the Regional Anti-

Terrorist Structure (RATS) based in Tashkent.

• The SCO Secretary-General and the Director of the Executive

Committee of the SCO RATS are appointed by the Council
of Heads of State for a term of three years.

NOA-Sarfraz Hussain Ansari 51

SCO AND THE RISE OF CHINA

NOA-Sarfraz Hussain Ansari 52

Old Silk Route Map
Regional Connectivity: Belt and Road Initiative Map

NOA-Sarfraz Hussain Ansari 54

NOA-Sarfraz Hussain Ansari 55
NOA-Sarfraz Hussain Ansari 56
NOA-Sarfraz Hussain Ansari 57
 SCO and Pakistan
• Pakistan was an Observer from 2005 to 2017

• The meeting of the Heads of State Council was

held on 8-9 June 2017 in Astana.

• Status of a full member of the Organization was

granted to India and Pakistan.

NOA-Sarfraz Hussain Ansari 58

• SCO has become a matter of significance for Pakistan

• the Belt and Road Initiative (BRI) and CPEC

• The importance of Pakistan lies in its strategic location

• it is expected to become a hub of regional connectivity.

• In terms of SCO, based on Pakistan's experience, the country can

offer consultation in anti-terror policies for the success of BRI.

• SCO can achieve its objectives of security and connectivity with the
participation of Pakistan.

NOA-Sarfraz Hussain Ansari 59

• Relations with China and Russia strengthened
– CPEC as a flagship project of BRI
– But casting doubts on CPEC projects and involving others in CPEC may erode
China’s confidence

• Pakistan has not been isolated diplomatically

• Pakistan can get security, trade and economic benefits from SCO and ECO

• Establishing a balance between China and US- a real challenge

• Improving Pakistan’s image- a difficult task

NOA-Sarfraz Hussain Ansari 60

• While reviewing the 'Modern Great Game',
the SCO is emerging significantly to contain US
influence in Central and South Asian region.

• Therefore, US seriously monitoring the

activities of the SCO.

NOA-Sarfraz Hussain Ansari 62

 http://eco.int/index.php

Economic Cooperation Organization

ECO

NOA-Sarfraz Hussain Ansari 63

NOA-Sarfraz Hussain Ansari 64
Economic Cooperation Organization (ECO)
• An inter-governmental regional organization
encompassing countries from
– Europe,
– Central Asia, and
– South Asia
• The overall objective of the organization is the
sustainable economic development of its
member states and the region as a whole

NOA-Sarfraz Hussain Ansari 65

 Background
• Established as Regional
Cooperation for
Development (RCD) in 1964
by Iran, Pakistan and Turkey
• Renamed as “ECO” in 1985.
• The ECO's secretariat
in Iran
• its economic bureau is
in Turkey
• its scientific bureau is
in Pakistan.

NOA-Sarfraz Hussain Ansari 66

 Objectives & Principles of Cooperation
• Sustainable economic development-Economic liberalization
• Gradual integration with the world economy;
• Development of transport & communications infrastructure
• Effective utilization of the agricultural and industrial
potentials
• Ecological and environmental protection
• Effective cooperation with other regional and international
organizations
• Exchanges in educational, scientific, technical and cultural
fields

NOA-Sarfraz Hussain Ansari 67

 Membership
• According to the Article XIII of the Treaty Of
Izmir (1977, and 1990)
– “Any State enjoying geographical contiguity with
the ECO region and/or sharing the objectives and
principles of ECO may apply to become a member
of the Organization.” 
• Currently ten countries from West and South
Asia, Caucasus and Central Asia are Members
of the Organization:

NOA-Sarfraz Hussain Ansari 68

 Member States
• In 1992 Afghanistan and six Central Asian
Republics, also joined

NOA-Sarfraz Hussain Ansari 69

 ECO Organs
• The ECO functions through its
intergovernmental machinery, Secretariat and
specialized agencies and regional institutions. 

NOA-Sarfraz Hussain Ansari 70

 ORGANIZATIONAL STRUCTURE OF ECO

• There shall be,

– ECO Summit
– a Council of Ministers,
– a Council of Permanent Representatives,
– a Regional Planning Council,
– a Secretariat, and
– Specialized Agencies in specific fields of
cooperation.

NOA-Sarfraz Hussain Ansari 71

 1. ECO-Summit
• the Article IV of the Treaty of Izmir
– the Heads of State/Government meet biennially or more often if considered
necessary.

• The Summit meetings review the objective conditions and progress in

implementation of ECO programmes and projects

• exchanging views on regional and global issues of common interest to

the ECO region.

• Since ECO enlargement in 1992, 13 Summit meetings held.

• The last meeting, 13th Summit, was held on 1st March 2017 in
Islamabad, Pakistan

NOA-Sarfraz Hussain Ansari 72

Summits Held So Far

NOA-Sarfraz Hussain Ansari 73

• 2. COUNCIL OF MINISTERS
– the policy and decision-making body
– It comprises the Ministers of Foreign Affairs or any other
representatives of full ministerial rank as may be nominated
by the governments
– responsible for decision on/approval of policies, strategies,
and work programs
• 3. SECRETARIAT
– comprises a Secretary-General and staff
– its Headquarters in Tehran
– The Secretary-General is elected and appointed by
• the Council of Ministers
• for a non-renewable term of three years

NOA-Sarfraz Hussain Ansari 74

 4.The Regional Planning Council (RPC)

• The Regional Planning Council (RPC) is the

main technical planning body within ECO
which comprises the heads of the Planning
Organizations of the Member States 

NOA-Sarfraz Hussain Ansari 75

 Critical Evaluation
• it is a trade bloc for the member states connected to
– The Mediterranean through Turkey
– The Persian Gulf via Iran, and
– The Arabian sea via Pakistan
• It provides a platform to improve socio-economic
development
• promotes trade and investment opportunities.
• The dream is to establish a single market for goods
and services, much like ASEAN or the EU

NOA-Sarfraz Hussain Ansari 76

• Terrorism and extremism: a common challenge for all the ECO
members
• Peace in Afghanistan and the Middle East: a key to ECO
success
• Iran and Saudi Arabia: Rivalry over Middle Eastern politics and
options for Pakistan
• Iran under US sanctions and options for Pakistan
– the Iran–Pakistan-India (IPI)gas pipeline, as well as a
Turkmenistan–Afghanistan–Pakistan-India (TAPI) pipeline
– Indian influence in Iran and Afghanistan

• CPEC as a nodal point for regional connectivity

NOA-Sarfraz Hussain Ansari 77